one another.262
The case in which both England and the United States would gain from the trade may be thus briefly shown:
| Articles interchanged. | United States. | England. |
|---|---|---|
| Corn. | 100 days' labor produces x bus. | 200 days' labor produces x bus. |
| Iron. | 125 days' labor produces y tons. | 150 days' labor produces y tons. |
The ship which carries x bushels of corn from the United States to England can there exchange it for at least y tons of iron (costing England 150 days' labor, since x bushels in England would cost 200 days' labor), and bring it home, gaining for the United States the difference between the 100 days' labor in corn, paid for the y tons of iron, and the 125 days which the iron would have cost here if produced at home. In this case the United States has an advantage over England in both corn and iron, but still an international trade will spring up, because the United States will derive a gain owing to the less cost of corn as compared with the cost of iron. Our comparative advantage is in corn. England, also, by sending to the United States y tons of